Medicinal cannabis dealer leases ex-Oakley HQ
Medicinal cannabis dealer Releaf Group will relocate its headquarters within St Kilda.
The six year old business, Australia’s first dedicated marijuana dispensary, has chosen 24 The Esplanade – a standalone office once occupied by Oakley.
The landlord is Omni Property, led by Howard Swinton and boxing promoter Brian Amatruda.
Quinn Reynolds’ Linc Reynolds and Marcus Quinn were the agents.
Releaf on growth trajectory
Despite being available in parts, Releaf has leased the entire two storey office, with 983 square metres of A-grade area and a rooftop deck – all with views of Port Phillip, Luna Park and the Palais Theatre.
No rent is disclosed however similar quality space in the suburb achieves over $400 per sqm per annum.
The initial lease term is six years.
The occupier, led by Gary McKenzie, will move offices from nearby 82 Acland Street, a commercial space above the shop (80 Acland St) which was in 2020 Melbourne’s first cannabis dispensary – which will continue to trade (story continues below).
Last year, Releaf teamed with US-based Cookie – led by Billboard chart topping rapper Berner, or Gilbert Milam Junior – to expand its Asia-Pacific operations; the company is aiming to have over 200 clinics here by 2025.
“Whilst the tenant was an existing local occupier, enquiry levels from traditional CBD tenants for city fringe buildings has increased following the easing of COVID restrictions,” Mr Reynolds said.
“It is still a tenant’s market, however patient owners are being rewarded with a slight recovery in rental rates,” he added.
Oakley occupied 24 The Esplanade for over a decade until five years ago.
Elsewhere in the suburb, last month, the Cohen family paid $64 million for The Esplanade Hotel freehold.
St Kilda is about six kilometres from town.
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